Illustration of the SK Hynix firm emblem seen displayed on a smartphone display screen.
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Shares in South Korean chipmaker SK Hynix prolonged good points to hit a greater than 2-decade excessive on Tuesday, following experiences over the weekend that SK Group plans to construct the nation’s largest AI knowledge heart.
SK Hynix shares, which have surged nearly 50% up to now this 12 months on the again of an AI growth, have been up practically 3%, following good points on Monday.
The corporate’s father or mother, SK Group, plans to construct the AI knowledge heart in partnership with Amazon Internet Companies in Ulsan, in accordance with home media. SK Telecom and SK Broadband are reportedly main the initiative, with assist from different associates, together with SK Hynix.
SK Hynix is a number one provider of dynamic random entry reminiscence or DRAM — a sort of semiconductor reminiscence present in PCs, workstations and servers that’s used to retailer knowledge and program code.
The corporate’s earnings outlook has strengthened amid a latest uptick in legacy DRAM pricing, MS Hwang, analysis director at Counterpoint Analysis informed CNBC.
“Notably, Morgan Stanley — traditionally bearish on the corporate — has revised its earnings estimates upward on SK Hynix,” he added.
The corporate’s DRAM rival, Samsung, was additionally buying and selling up 4% on Tuesday. Nonetheless, it is progress has fallen behind that of SK Hynix.
On Friday, Samsung Electronics’ market cap reportedly slid to a 9-year low of 345.1 trillion received ($252 billion) because the chipmaker struggles to capitalize on AI-led demand.
SK Hynix, then again, has develop into a frontrunner in excessive bandwidth reminiscence — a sort of DRAM utilized in synthetic intelligence servers — supplying to purchasers equivalent to AI behemoth Nvidia.
A report from Counterpoint Analysis in April stated that SK Hynix had captured 70% of the HBM market by income share within the first quarter.
This HBM power helped it overtake Samsung within the total DRAM marketplace for the primary time ever, with a 36% international market share as in comparison with Samsung’s 34%.
“Whereas Samsung is making technological progress, capturing [SK Hynix’s] NVIDIA market share will seemingly require further time,” stated Counterpoint’s Hwang. “SK Hynix’s dominance in HBM stays agency.”
